20, August 2013

GBP/USD (a 4-hour chart)

GBP/USD (a 4-hour chart)

General Overview

All news received from the UK economy are positive, retail sales rose by 1.1 percent (much more than expected) in July, the unemployment rate fell by more than twenty nine thousands people in July and this place has a firm track record for the past nine months, inflation is slightly above the target of two per cent, but the Central Bank of England is expected to gradually stabilize it.

Ichimoku Analysis

The pair keeps working out a "golden cross. The current buy signal is strong and confirmed, as Chinkou span entrenched above the price, and the price is above the Ichimoku cloud.

If the growth continues, the pair will continue growing to 1.57. First the pair needs to consolidate at 1.56, reached yesterday. The cloud is directed upwards. Tenkan-sen is slightly increased and the Kijun-sen is horizontal.

Bollinger Bands indicator shows an upward movement, the bands are directed up.
MACD changed its mind about falling and returned to growth.

Trading Recommendations

The pound sterling came to the resistance level 1.5645, from which short-term rebound down is likely to happen - support level is 1.5550. This correction is necessary in order to support the gained position and the obtained volume to continue the upward trend. Break above 1.5645 would be a good signal for longs to become the next target - 1.5720.

Alternative variant

If, after a downward correction to 1.5550 support level pulse jump doesn't happen up to a further break the resistance level 1.5645, the currency pair GBPUSD, is most likely to go in a correction down.